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CIEN

CienaNYSE:CIEN Stock Report

Market Cap

US$9.3b

7D

-0.1%

1Y

32.5%

Updated

30 Nov, 2021

Data

Company Financials +
CIEN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends0/6

CIEN Stock Overview

Ciena Corporation provides network hardware, software, and services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide.

Ciena Competitors

F5

NasdaqGS:FFIV

US$13.9b

Juniper Networks

NYSE:JNPR

US$10.1b

Lumentum Holdings

NasdaqGS:LITE

US$6.3b

Calix

NYSE:CALX

US$4.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ciena
Historical stock prices
Current Share PriceUS$60.23
52 Week HighUS$62.56
52 Week LowUS$43.63
Beta0.83
1 Month Change10.94%
3 Month Change5.89%
1 Year Change32.55%
3 Year Change91.51%
5 Year Change186.81%
Change since IPO-53.49%

Recent News & Updates

Nov 15
Is Ciena Corporation (NYSE:CIEN) Trading At A 27% Discount?

Is Ciena Corporation (NYSE:CIEN) Trading At A 27% Discount?

How far off is Ciena Corporation ( NYSE:CIEN ) from its intrinsic value? Using the most recent financial data, we'll...

Nov 02
Ciena (NYSE:CIEN) Seems To Use Debt Quite Sensibly

Ciena (NYSE:CIEN) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Oct 20
Is There Now An Opportunity In Ciena Corporation (NYSE:CIEN)?

Is There Now An Opportunity In Ciena Corporation (NYSE:CIEN)?

Ciena Corporation ( NYSE:CIEN ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

CIENUS CommunicationsUS Market
7D-0.1%-1.3%-2.8%
1Y32.5%29.8%20.0%

Return vs Industry: CIEN exceeded the US Communications industry which returned 29.8% over the past year.

Return vs Market: CIEN exceeded the US Market which returned 20% over the past year.

Price Volatility

Is CIEN's price volatile compared to industry and market?
CIEN volatility
CIEN Average Weekly Movement3.7%
Communications Industry Average Movement6.3%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: CIEN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CIEN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19927,032Gary Smithhttps://www.ciena.com

Ciena Corporation provides network hardware, software, and services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide. The company’s Networking Platforms segment offers hardware networking products and solutions that optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, and the 6500 Reconfigurable line system, and the 5400 family of Packet-Optical platforms, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 6500 Packet Transport System.

Ciena Fundamentals Summary

How do Ciena's earnings and revenue compare to its market cap?
CIEN fundamental statistics
Market CapUS$9.33b
Earnings (TTM)US$461.74m
Revenue (TTM)US$3.41b

20.2x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIEN income statement (TTM)
RevenueUS$3.41b
Cost of RevenueUS$1.77b
Gross ProfitUS$1.64b
ExpensesUS$1.18b
EarningsUS$461.74m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

Dec 09, 2021

Earnings per share (EPS)2.98
Gross Margin48.19%
Net Profit Margin13.55%
Debt/Equity Ratio23.9%

How did CIEN perform over the long term?

See historical performance and comparison

Valuation

Is Ciena undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIEN ($60.23) is trading below our estimate of fair value ($83.6)

Significantly Below Fair Value: CIEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CIEN is good value based on its PE Ratio (20.2x) compared to the US Communications industry average (28x).

PE vs Market: CIEN is poor value based on its PE Ratio (20.2x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: CIEN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CIEN is overvalued based on its PB Ratio (3.2x) compared to the US Communications industry average (2.2x).


Future Growth

How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIEN's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: CIEN's earnings are forecast to decline over the next 3 years (-17.4% per year).

High Growth Earnings: CIEN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CIEN's revenue (7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CIEN's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIEN's Return on Equity is forecast to be low in 3 years time (15%).


Past Performance

How has Ciena performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIEN has high quality earnings.

Growing Profit Margin: CIEN's current net profit margins (13.5%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: CIEN's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: CIEN's earnings growth over the past year (22.8%) exceeds its 5-year average (5.1% per year).

Earnings vs Industry: CIEN earnings growth over the past year (22.8%) underperformed the Communications industry 22.8%.


Return on Equity

High ROE: CIEN's Return on Equity (15.8%) is considered low.


Financial Health

How is Ciena's financial position?


Financial Position Analysis

Short Term Liabilities: CIEN's short term assets ($3.0B) exceed its short term liabilities ($827.1M).

Long Term Liabilities: CIEN's short term assets ($3.0B) exceed its long term liabilities ($904.5M).


Debt to Equity History and Analysis

Debt Level: CIEN has more cash than its total debt.

Reducing Debt: CIEN's debt to equity ratio has reduced from 205.9% to 23.9% over the past 5 years.

Debt Coverage: CIEN's debt is well covered by operating cash flow (67.8%).

Interest Coverage: CIEN's interest payments on its debt are well covered by EBIT (13.7x coverage).


Balance Sheet


Dividend

What is Ciena current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CIEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CIEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CIEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CIEN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CIEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure


CEO

Gary Smith (61 yo)

20.5yrs

Tenure

US$11,202,255

Compensation

Mr. Gary B. Smith has been Principal Executive Officer of Cyan, Inc. since August 3, 2015. Mr. Smith serves as the Chief Executive Officer and President of Ciena Corporation since May 2001. He served as th...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD11.20M) is above average for companies of similar size in the US market ($USD6.24M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CIEN's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: CIEN's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ciena Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Ciena Corporation
  • Ticker: CIEN
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$9.331b
  • Shares outstanding: 154.93m
  • Website: https://www.ciena.com

Number of Employees


Location

  • Ciena Corporation
  • 7035 Ridge Road
  • Hanover
  • Maryland
  • 21076
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:52
End of Day Share Price2021/11/30 00:00
Earnings2021/07/31
Annual Earnings2020/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.